Babcock & Wilcox shares jumped 8.52% on $40 million contract win for Wet Gas Scrubbing tech

Babcock & Wilcox shares jumped 8.52% in pre-market trading on Dec. 26, 2025, driven by a $40 million contract win for its Wet Gas Scrubbing technology at a Canadian refinery. The deal underscores growing demand for the company’s environmental solutions amid global decarbonization efforts.

The contract follows a strong Q3 performance, with the firm reporting $35.1 million in net income compared to a prior-year loss. It also redeemed $26 million in senior debt, signaling improved liquidity and financial resilience. These moves highlight management’s focus on balancing near-term profitability with long-term strategic investments.

Meanwhile, the company’s SolveBright carbon capture system is gaining traction in the U.S. market, aligning with regulatory and industrial shifts toward reducing emissions. Analysts note that scaling such technologies will be critical for sustained growth, though capital intensity remains a challenge. The recent pre-market rally reflects investor confidence in both immediate operational progress and future market positioning.

With global demand for carbon capture technologies rising, Babcock & Wilcox is well-positioned to capitalize on its growing reputation and technological edge. However, investors must remain cautious about the high fixed costs and regulatory uncertainties that could affect margins. The company has also indicated plans to expand its R&D efforts to maintain a leadership position in the sector.